Why Arthur Hayes sold $5.1 million HYPE tokens because of $12B Hyperliquid concern
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the wild world of crypto in simple, everyday language. Today, we’re diving into the recent buzz around Arthur Hayes selling off a big chunk of Hyperliquid’s HYPE tokens—right after he hyped it up big time. We’ll cover the backstory, reasons, and what it means for the market. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, for beginners like me, who is Arthur Hayes and why is his token sale such a big deal?
Who is Arthur Hayes and His Role in Crypto
John: Great question, Lila. Arthur Hayes is a big name in crypto—he co-founded BitMEX, one of the earliest major exchanges for trading crypto derivatives, back in 2014. As of now, in 2025, he’s the chief investment officer at Maelstrom, a family office focused on crypto investments. He’s known for bold predictions and has influenced market sentiment with his writings and trades.
Lila: Derivatives? That sounds complicated. Can you explain it simply?
John: Sure thing! Think of derivatives like betting on the future price of something without owning it outright—similar to how farmers might hedge against bad weather affecting crop prices. In crypto, it’s tools like futures contracts that let traders amplify gains (or losses) on assets like Bitcoin.
Background on Hyperliquid and the HYPE Token
John: Hyperliquid is a decentralized exchange (DEX) built on its own blockchain, launched around 2023, focusing on perpetual futures trading. It’s gained traction for its speed and low fees, handling billions in trading volume. The HYPE token is its native asset, used for governance and staking, and it went live with much fanfare in mid-2025.
Lila: Perpetual futures? What’s that?
John: Imagine a contract that lets you trade an asset’s price indefinitely without an expiration date—it’s like a never-ending bet on whether Bitcoin will go up or down. Hyperliquid excels here, and as of 2025-09-22, its total value locked has been impressive, though not without competition.
John: Just a few weeks ago, on 2025-08-30, Hayes publicly praised HYPE in a CoinDesk article, predicting it could surge 126x due to stablecoin flows and Hyperliquid’s edge as an on-chain exchange. He even suggested it might reach $5,000 per token by 2028, based on his analysis.
What Happened with the Sale
John: Fast forward to 2025-09-21, and Hayes sold his entire position of 96,600 HYPE tokens for about $5.1 million, booking an $823,000 profit after holding for just over a month. This came right after his bullish forecast, catching many off guard. Reports from CryptoSlate and other sources indicate he transferred tokens to market makers like Flowdesk, Wintermute, and Galaxy.
Lila: Why sell so soon? Wasn’t he super optimistic?
John: Exactly. According to Maelstrom’s statements cited in CryptoSlate on 2025-09-22, the sale was driven by concerns over an upcoming token unlock event. This could flood the market with new HYPE tokens, potentially adding $410 million in monthly sell pressure starting later in 2025. Plus, there’s rising competition from projects like Aster, backed by CZ of Binance fame.
John: Hayes himself joked about using the proceeds for a Ferrari deposit in a post-sale comment, but the core issues seem tied to Hyperliquid’s $12 billion fully diluted valuation—seen as high amid these unlocks and market dynamics. (Hey, who hasn’t dreamed of a fancy car after a good trade?)
Market Impact and Current Landscape
John: The sale triggered an immediate reaction: HYPE’s price dropped about 10% on 2025-09-22, erasing around $1.7 billion in market value temporarily. As of now, 2025-09-22, whales are also withdrawing large amounts, like a $122 million HYPE exit reported by TradingView News. This reflects broader concerns about vesting schedules, where locked tokens become available over time.
Lila: Whales? Like the animal?
John: Haha, in crypto slang, whales are big holders who can move markets with their trades—think of them as the ocean giants splashing waves everywhere. Hyperliquid’s daily trading volume remains strong at over $1 billion, but sentiment on X (formerly Twitter) shows mixed reactions, with some users calling out the quick flip.
John: In the past, similar events—like token unlocks in projects such as Aptos in 2023—have led to price dips, but recoveries happen if fundamentals hold. Currently, Hyperliquid competes with DEXs like dYdX and centralized ones like Binance.
Reasons Behind the Concern: Unlocks and Competition
John: Drilling down, the $12 billion concern likely refers to Hyperliquid’s fully diluted market cap, which factors in all potential tokens. Upcoming unlocks, starting in late 2025, could dilute value by releasing team and investor tokens. Hayes’ firm highlighted this in their reasoning, per BitcoinEthereumNews on 2025-09-22.
Lila: How can beginners spot these risks?
John: Good eye! Here’s a quick list of red flags for token investments:
- Check the vesting schedule on official sites or tools like TokenUnlocks.app—look for large unlocks soon.
- Monitor competition: New players like Aster could steal market share.
- Follow on-chain data via platforms like Dune Analytics for whale movements.
- Read expert analyses from sources like CoinDesk to gauge sentiment.
John: As of 2025-09-22, Hyperliquid’s team hasn’t officially responded, but community posts on X suggest ongoing debates about long-term potential versus short-term pressures.
Looking Ahead: What This Means for Investors
John: Looking ahead, if Hyperliquid navigates these unlocks smoothly—perhaps through buybacks or ecosystem growth—it could still hit Hayes’ earlier targets. Past examples, like Solana’s recovery after 2022 lows, show resilience is possible. But with increasing regulatory scrutiny on DEXs, as seen in SEC moves in 2024, caution is key.
Lila: Any tips for staying updated?
John: Absolutely—subscribe to newsletters from Cointelegraph or follow verified accounts. In the future, watch for Hyperliquid’s updates around Q4 2025, when unlocks ramp up.
FAQs on HYPE and Token Sales
John: Let’s tackle some common questions. Is HYPE a good buy now? Remember, I’m not giving advice, but always do your research.
Lila: What if someone wants to trade on Hyperliquid?
John: Start by connecting a wallet like MetaMask to their platform—it’s user-friendly for perps. As for Hayes’ sale, it underscores how even experts adjust based on new info.
John: Wrapping this up, Arthur Hayes’ quick sale of HYPE tokens highlights the fast-paced nature of crypto, where unlocks and competition can shift sentiments overnight. It’s a reminder to stay informed and not chase hype blindly. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—that makes sense! Key takeaway: Crypto moves fast, so keep an eye on the fundamentals and enjoy the ride responsibly.
This article was created using the original article below and verified real-time sources:
- Why Arthur Hayes sold $5.1 million HYPE tokens because of $12B Hyperliquid concern
- Hyperliquid News: Why BitMEX Co-Founder Arthur Hayes Thinks HYPE Can 126x From Here
- Why Arthur Hayes sold $5.1 million HYPE tokens because of $12B Hyperliquid concern
- CZ’s Aster Shakes Hyperliquid, Pushes Arthur Hayes To Sell HYPE